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The Entrepreneurial ManagerThe Entrepreneurial Manager
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The Entrepreneurial ManagerThe Entrepreneurial Manager
There are convergentThere are convergent
pressures on being anpressures on being an
entrepreneur and beingentrepreneur and being
a manager as a venturea manager as a ventureaccelerates and growsaccelerates and grows
beyond founder-drivenbeyond founder-driven
survival. Key to futuresurvival. Key to future
success is the ability ofsuccess is the ability of
an entrepreneur to havean entrepreneur to haveor develop competenciesor develop competencies
as an entrepreneurialas an entrepreneurial
manager.manager.
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The Entrepreneurial ManagerThe Entrepreneurial Manager
Old CW:Old CW: A good entrepreneurA good entrepreneur
cant be a good manager.cant be a good manager.
New CW:New CW: Ventures thatVentures thatflourish beyond startup canflourish beyond startup can
be headed bybe headed byentrepreneurs who areentrepreneurs who arealso effective managers.also effective managers.
UnconventionalUnconventional
Wisdom?Wisdom?
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The Entrepreneurial ManagerThe Entrepreneurial Manager
Founders adapt forFounders adapt for
three key reasons:three key reasons:
Shift from creation toShift from creation toexploitationexploitation
Shift from passionateShift from passionate
commitment tocommitment to
dispassionate objectivitydispassionate objectivity
Shift from direct personalShift from direct personal
control to indirect,control to indirect,
impersonal control.impersonal control.
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Stages of GrowthStages of Growth
Startup StageStartup StageFrom 2 to 7 years; most perilous stage,From 2 to 7 years; most perilous stage,
characterized by efforts of leadcharacterized by efforts of lead
entrepreneur.entrepreneur.
High-Growth StageHigh-Growth Stage
In this, perhaps the most challengingIn this, perhaps the most challenging
stage, new ventures fail at 60% rate.stage, new ventures fail at 60% rate.
Lemons ripen.Lemons ripen.
Maturity StageMaturity Stage
Key issue is no longer survival. It isKey issue is no longer survival. It is
steady, profitable growth.steady, profitable growth.
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Stages of GrowthStages of Growth
StartupStartup High Growth Maturity StabilityHigh Growth Maturity Stability
00 3-43-4 10 1510 15 Time (Years)Time (Years)
Crucial Transitions:Crucial Transitions:
SalesSales 0-$3Million0-$3Million $2-10M$2-10M $7.5M+$7.5M+EmployeesEmployees 0 to 20-250 to 20-2525-7525-75 75-100+75-100+
ManagementManagementModeMode DoingDoing Managing Managing ManagersManaging Managing Managers
$100 M+$100 M+
$50 M$50 M
$25M$25M
$3 M$3 M
$1 M$1 M
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The Entrepreneurial ManagerThe Entrepreneurial Manager
Entrepreneurial CultureEntrepreneurial CultureA common value systemA common value system
Difficult to measure orDifficult to measure orarticulatearticulate
Belief in and commitmentBelief in and commitmentto growthto growth
Team feels theyre in this thing togetherTeam feels theyre in this thing together
Goals and market determine prioritiesGoals and market determine priorities
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The Entrepreneurial ManagerThe Entrepreneurial Manager
TheThe FitFitConceptConcept
It is important to have aIt is important to have a
management team whosemanagement team whose
skills are complementary.skills are complementary.
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The Entrepreneurial ManagerThe Entrepreneurial Manager
Entrepreneurship Influence SkillsEntrepreneurship Influence Skills
Leadership/vision/influenceLeadership/vision/influenceHelping/coaching and conflictHelping/coaching and conflict
managementmanagement
Teamwork and people managementTeamwork and people management
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Exhibit 7.1Exhibit 7.1
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Exhibit 7.2Exhibit 7.2
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Exhibit 7.3Exhibit 7.3
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Traits Characterizing RapidlyTraits Characterizing Rapidly
Growing CompaniesGrowing Companies
High levels of change, ambiguity, and uncertaintyHigh levels of change, ambiguity, and uncertainty
Ongoing succession of nonlinear and nonparametricOngoing succession of nonlinear and nonparametric
eventsevents
Inexperience of management teamInexperience of management team
Counterintuitive, unconventional patterns ofCounterintuitive, unconventional patterns of
decision-makingdecision-making
Informality and fluidity of organization structure andInformality and fluidity of organization structure and
procedureprocedure
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Exhibit 7.6Exhibit 7.6
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Entrepreneurial Influence SkillsEntrepreneurial Influence Skills
Interpersonal/teamwork skillsInterpersonal/teamwork skills
Ability to create, through management, a climateAbility to create, through management, a climate
and spirit conducive to high performanceand spirit conducive to high performance Ability to understand the relationships amongAbility to understand the relationships among
tasks and between the leader and followerstasks and between the leader and followers
Ability to lead in those situations where it isAbility to lead in those situations where it is
appropriateappropriate
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Characteristics of SuccessfulCharacteristics of Successful
ManagersManagers
Managers skilled in leadership, vision, andManagers skilled in leadership, vision, and
influenceinfluence
Skillful in creating clarity out of confusion,Skillful in creating clarity out of confusion,ambiguity, and uncertaintyambiguity, and uncertainty
Able to define adroitly and gain agreement on whoAble to define adroitly and gain agreement on who
has what responsibility and authorityhas what responsibility and authority
Manage in a way that builds motivation andManage in a way that builds motivation and
commitment to cross-departmental and corporatecommitment to cross-departmental and corporate
goals, not just parochial interestsgoals, not just parochial interests
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Characteristics of SuccessfulCharacteristics of Successful
ManagersManagers
Managers skilled at helping, coaching, andManagers skilled at helping, coaching, and
conflict managementconflict management
Creatively handle conflicts, generate consensusCreatively handle conflicts, generate consensusdecisions, and share power and informationdecisions, and share power and information
Recognize that high-quality decisions require aRecognize that high-quality decisions require a
rapid flow of information in all directionsrapid flow of information in all directions
Accept that knowledge, competence, logic, andAccept that knowledge, competence, logic, and
evidence need to prevail over official status orevidence need to prevail over official status or
formal rank in organizationformal rank in organization
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Characteristics of SuccessfulCharacteristics of Successful
ManagersManagers
Managers skilled at teamwork and peopleManagers skilled at teamwork and people
managementmanagement Encourage innovation and calculated risk rather than byEncourage innovation and calculated risk rather than by
punishing or criticizing whatever is less than perfectpunishing or criticizing whatever is less than perfect
Expect and encourage others to find and correct their ownExpect and encourage others to find and correct their own
errors and to solve their own problemserrors and to solve their own problems
Make heroes out of other team members and contributorsMake heroes out of other team members and contributors
Generate trust among colleges and subordinatesGenerate trust among colleges and subordinates
Perceived as honest and direct, open and spontaneousPerceived as honest and direct, open and spontaneous
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Other ManagementOther Management
CompetenciesCompetencies
MarketingMarketing Market research and evaluationMarket research and evaluation
Marketing planningMarketing planning
Product pricingProduct pricing
Sales managementSales management
Direct sellingDirect selling
Service managementService management Distribution managementDistribution management
Product managementProduct management
New product planningNew product planning
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Other ManagementOther Management
CompetenciesCompetencies
Operations/ProductionOperations/Production Manufacturing managementManufacturing management
Inventory controlInventory control
Cost analysis and controlCost analysis and control
Quality controlQuality control
Production scheduling and flowProduction scheduling and flow
PurchasingPurchasing Job evaluationJob evaluation
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Other ManagementOther Management
CompetenciesCompetencies
FinanceFinance Raising capitalRaising capital
Managing cash flowManaging cash flow
Credit and collection managementCredit and collection management
Short-term financing alternativesShort-term financing alternatives
Public and private offeringsPublic and private offerings
Bookkeeping, accounting, and controlBookkeeping, accounting, and control Other specific skillsOther specific skills
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Other ManagementOther Management
CompetenciesCompetencies
Entrepreneurial ManagementEntrepreneurial Management Problem solvingProblem solving
CommunicationsCommunications
PlanningPlanning
Decision-makingDecision-making
Project managementProject management
NegotiatingNegotiating Managing outside professionalsManaging outside professionals
Personnel administrationPersonnel administration
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Other ManagementOther Management
CompetenciesCompetencies
Law and TaxesLaw and Taxes Corporate and securities lawCorporate and securities law
Contract lawContract law
Law relating to patent and proprietary rightsLaw relating to patent and proprietary rights
Tax lawTax law
Real estate lawReal estate law
Bankruptcy lawBankruptcy law
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Other ManagementOther Management
CompetenciesCompetencies
Information TechnologyInformation Technology Information and management systems toolsInformation and management systems tools ..
Business to business, business to consumer,Business to business, business to consumer,business to government, all via the Internetbusiness to government, all via the Internet
Sales, marketing, manufacturing, and merchandisingSales, marketing, manufacturing, and merchandisingtools.tools.
Financial, accounting, and risk analysis andFinancial, accounting, and risk analysis andmanagement tools.management tools.
Telecommunications and wireless solutions forTelecommunications and wireless solutions forcorporate information, data, and processcorporate information, data, and process
management.management.
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